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Financing Education Beyond High School. Overview of Financial Aid What is Financial Aid How aid is calculated/packaged Application process Questions. Principles Of Need Analysis. To extent they are able, parents have primary responsibility to pay for dependent child’s education

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slide2
Overview of Financial Aid
  • What is Financial Aid
  • How aid is calculated/packaged
  • Application process
  • Questions
principles of need analysis
Principles Of Need Analysis
  • To extent they are able, parents have primary responsibility to pay for dependent child’s education
  • Students also have responsibility to contribute to educational costs
  • Families should be evaluated in their present financial condition
  • Family’s estimated ability to pay for educational costs must be evaluated in equitable & consistent manner, recognizing that special circumstances may affect family ability to pay
  • Merit Aid departs from this philosophy
goal of financial aid
Goal of Financial Aid
  • Primary goal is to assist students in paying for their educational investment and is achieved by:
    • Evaluating family’s ability to pay for educational costs
    • Distributing limited resources in an equitable manner
    • Providing a balance of gift aid and self-help aid
what is considered financial aid
What is considered Financial Aid?
  • Scholarships – Institutional, Outside awards
  • Grants – Federal/State/Institutional
  • Loans – Federal/Institutional
  • Employment opportunities- Federal/Institutional
types of aid
Types of Aid
  • Gift
    • Merit (Institutional)
  • Grant (Institutional)
  • Need-Based Aid
  • PELL – Federal Grant
  • SEOG – Federal Grant
  • Self-help
  • loans – Student pays back after graduation
  • jobs – Student works while enrolled
  • Outside Aid (Grants/Scholarships)
  • State Grants – Tuition Assistance Program (TAP), Merit
  • Other – Elks Club, Rotary, Lions Club, etc.
self help
Self-Help
  • Loans to Students
    • Federal Perkins Loan-max.$5500/yr; 5% interest; 10 years to repay, 9 months grace, campus-based
    • Federal Stafford/Direct Loan- $3500 1st year, $4500 2nd year, $5500 3rd & 4th years; 6.8% fixed interest; 10 years to repay; 6 months grace.
    • Unsubsidized Stafford/Direct Loan- $2000 per year, 6.8% fixed interest.
  • Employment
    • Federal Work Study
    • Institutional
general eligibility requirements
General Eligibility Requirements
  • Must be enrolled or accepted for enrollment in an eligible program of study
  • Must be pursuing a degree, certificate, or other recognized credential
  • Must be a U.S. citizen or eligible noncitizen
  • Must be registered with Selective Service (if male and required to be 18 yr.)
  • May not have eligibility suspended or terminated due to a drug-related conviction for current application year
general eligibility requirements continued
General Eligibility Requirements (continued)
  • Must have a valid Social Security Number
  • May not be in default on a federal student loan
  • May not owe repayment of a federal grant
  • Must be making satisfactory academic progress as defined by the school
definition of need
Definition of Need

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

cost of attendance
Cost of Attendance
  • Tuition and fees
  • Room and meals
  • Books and supplies, equipment, transportation, and miscellaneous personal expenses
  • Study abroad costs
  • Dependent care expenses
  • Expenses related to a disability
  • Expenses for cooperative education program
expected family contribution is the sum of four separate calculations
Expected Family Contributionis the sum of four separate calculations:
  • Contribution from Parents’ Income
  • Contribution from Parents’ Assets
  • Contribution from Student’s
  • Contribution from Student’s Assets
need formulas
Need Formulas
  • Federal Methodology (FM) (FAFSA)
    • Created by Congress
    • Used to allocate limited federal funds
    • Also used by some private colleges to distribute own aid
  • Institutional Methodology (IM)
    • Used by many private colleges to determine need for their institutional funds (PROFILE)
    • Tries to measure financial “need” rather than simply allocate funds.
differences between fm im formulas
Differences Between FM & IM Formulas:
  • IM:
    • Minimum student contribution
    • Home equity may be counted in parent assets
    • Sibling in lower cost college or receiving merit aid or athletic aid not counted as full divider of parent contribution
    • Passive losses may be added back into income
    • Non-custodial parent may have contribution
financial aid package
Financial Aid Package

Institutional Grant Aid

Federal SEOG

Loans & Jobs

Outside Scholarships

Federal Pell Grant

New York State TAP

slide17
OK, WE KNOW WHAT NEED-BASED AID IS, BUT WHAT IF THERE’S A GAP IN THE PACKAGE OR WE NEED TO FINANCE OUR EXPECTED FAMILY CONTRIBUTION?
  • For Student
    • Unsubsidized Federal Stafford/Direct Loan (if not already in package as subsidized)
  • For Parent:
    • PLUS
      • If have good credit can get up to cost of attendance less aid received
      • Fixed 7.9% interest rate - 10 years to repay
      • Where get: same place as Stafford/Direct
    • Home Equity Loans
    • Institutional and Other Private Loans
    • Payment Plans
    • Tuition Savings Plans (529)
financial aid applications and processors
Financial Aid Applications and Processors
  • Uncle Sam’s Free Application for Federal Student Aid (FAFSA)
    • All must fill this form out for federal & state aid
    • Paper or on-line application
  • College Scholarship Service’s Financial Aid PROFILE
    • Private colleges and universities to distribute institutional funds
    • On line applications only
    • Non Custodial PROFILE
free application for federal student aid fafsa
Free Application for Federal Student Aid (FAFSA)
  • Family’s personal and financial information required to calculate the student’s EFC is collected on FAFSA
  • Paper versions of FAFSA
    • First Time Applicants only
  • Electronic version of FAFSA and Renewal FAFSA
    • FAFSA on the Web at www.fafsa.ed.gov
    • Personal Identification Number (PIN) required and may be obtained at www.pin.ed.gov
profile college scholarship service
PROFILECollege Scholarship Service
  • Available on line only
  • www.Collegeboard.com
  • Length of application personalized to each family’s unique financial status
  • $25 for first school, $16 for each additional school
  • Waiver of fees using USDA “reduced price lunch” income

__________________________________________________

NON-CUSTODIAL PROFILE

  • Available on line only
  • Cost is $25
avoid errors
Avoid ERRORS!

Errors made in completing these and/or supplemental forms may delay application processing and result in the loss of financial aid funds.

Please complete all forms carefully!

frequent errors
Frequent Errors
  • Divorced/remarried parent information
  • Income earned by parents/stepparents
  • Untaxed income
  • U.S. income taxes paid
  • Household size
  • Number in postsecondary education
  • Real estate and investment net worth
  • Application is not signed by parent/student
role of the financial aid office
Role of the Financial Aid Office
  • Determine eligibility for financial aid
  • Packages aid depending on eligibility of funds
  • Sends an award notification which details:
    • Student’s cost of attendance
    • Student’s Expected Family Contribution (student & parent)
    • Amount of student’s financial need
    • Award amount for each program for which student is eligible
    • How and when aid will be disbursed
    • Terms and conditions of student’s award
financial aid application summary
Financial Aid Application Summary
  • One - Know which forms to use
  • Two - Apply for financial aid, no matter what
  • Three - apply as early as possible -- the early bird gets the worm (sometimes)
  • Four - Be as accurate as possible
  • Five - Be ready to explain your answers - at least 30% of all applications are subject to verification
  • Six - Make copies of your aid application and your tax return
  • Seven - Register for the draft
helpful websites
HELPFULWEBSITES:
  • College Board
  • www.collegeboard.com
  • - to complete PROFILE and Non Custodial Profile
  • - compare financial aid awards
  • US Department of Education
  • - www.fafsa.ed.gov to complete FAFSA
  • New York State Higher Education Services Corporation
  • www.hesc.com
  • - can determine eligibility for TAP – Tuition Assistance Program
  • General Information
  • www.finaid.org
  • - can search for outside awards
slide28

NEW!!!

Net Price Calculator

  • Began October 29, 2011
      • Every school must have on their website
      • Will provide you with estimate of financial
      • aid you can expect to receive
      • Caution- only an estimate
questions need help
Questions?? Need Help??

Call: Colgate Financial Aid Office

228-7431

Marcelle Tyburski

Tom Wise

Kris Hopkins

Or email: finaid@colgate.edu